Bitcoin’s illiquid supply has reached a record high of 14.3 million BTC, as reported by data analytics provider Glassnode. This milestone signifies that over 72% of the circulating Bitcoin is currently held by entities with minimal spending histories, indicating a substantial drop in the amount of liquid Bitcoin available for trading on exchanges.
The trend of long-term holders (LTHs) accumulating Bitcoin is gaining momentum, with over 422,000 coins being added to wallets that have held BTC for more than seven years since the start of the year. This accumulation reflects a growing commitment from both LTHs and large investors, commonly referred to as “whales.”
Fidelity, an asset management firm, has weighed in on the trend, forecasting that LTHs and corporate treasuries could secure more than six million BTC by the end of 2025. This projection would represent over 28% of the total 21 million Bitcoin that can ever exist. The firm stated, “We estimate that this combined group will hold over six million BTC by the end of 2025.”
In addition to individual holders, corporate strategic reserves and exchange-traded fund (ETF) issuers have also increased their Bitcoin holdings significantly. These entities now control 2.88 million BTC, up 30% from the 2.24 million they held at the beginning of the year. This ongoing consolidation is funneling more of Bitcoin’s total supply into the hands of major institutional players.
The buying patterns of whales—investors holding between 100 to over 1,000 BTC—are noting a historic pace, absorbing nearly 300% of the annual mined Bitcoin supply. Meanwhile, the balances held on exchanges are plummeting, with a negative absorption rate below -150%, indicating a significant preference for self-custody and long-term holding strategies among investors.
This structural change, along with enduring demand for ETFs, is further tightening the supply of Bitcoin available in the market. As a result, the liquidity of Bitcoin is decreasing, which diminishes the sell-side pressure while signaling growing confidence among substantial holders in the long-term value of the asset.
